Figure 20-7 -In Figure 20-7, There Are Three Aggregate Expenditure Functions (C

question 216

Multiple Choice

Figure 20-7

-In Figure 20-7, there are three aggregate expenditure functions (C + I + G + X − IM) for an open economy.Which of the following would cause a movement from B to A?

• A)a recession in Southeast Asia
• B)an economic expansion in Japan
• C)a depreciation of the dollar
• D)an increase in the interest rate

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Definitions:

Net Operating Income

The revenue left over after subtracting operating expenses, but before deducting interest and taxes.

Selling Price

The price at which a product or service is offered for sale to customers.

Sales Volume

The quantity of products or services sold by a company in a specific period.

Net Operating Income

A financial metric that calculates a company's profit after subtracting operating expenses, excluding taxes and interest.